Located on the corner of Lord and Newcastle streets, at the eastern entrance to the CBD, the building is 80% leased, anchored by London Stock Exchange-listed Compass Group. Compass Group occupies 58% of the building, having just renewed for a new 10-year term and ASX-listed NEXTDC Limited occupies 13% of the property. NEXTDC Limited is currently constructing a new data centre facility across the road at 105 Lord Street – a property it purchased earlier this year for $20 million.
A smaller portion of the building, 406sqm, is leased to Ionic Property Group.
CBRE’s Mr Desange said the property was expected to attract interest from buyers looking to capitalise on Perth’s attractive investment fundamentals.
“We anticipate strong interest from local, eastern seaboard and Asian private capital and syndicators seeking to unlock value in Perth, which continues to offer an attractive yield premium compared to some other markets,” Mr Desange said.
“The yield spread between Perth and the eastern seaboard CBD markets are well above the long-term average, with the yield spread between Perth and Sydney currently 203bps above the average of 132bps.”
The building, which offers good exposure to major arterials, including Graham Farmer Freeway, offers a net passing income of $1.342 million per annum – with potential to generate a fully leased net passing income of $1.906 million per annum.
CBRE’s Ben Younger added: “This quality office building offers large, flexible floor plates, which are suitable to accommodate larger tenants or are sub divisible into smaller tenancies. It also benefits from generous sized windows that provide ample natural light and views to the Perth hills and CBD.”
The property is being offered for sale via Expressions of Interest closing November 8 at 2pm (AWST).
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.